Dow Chemical Co. will raise the price of its products for the second time in a month to deal with what it calls the "relentless rise" in costs of energy and related raw materials.
The Midland-based chemical company announced Tuesday it will raise prices by as much as 25 percent next month. That follows price increases of up to 20 percent that took effect June 1.
Dow makes key ingredients used in paints, textiles, glass, packaging and cars.
As part of the announcement, Dow said it's adding a freight surcharge for North American customers of $300 per shipment by truck and $600 per shipment by rail effective Aug. 1. The company said it will add the surcharges in other regions later this year.
Dow also announced it's moving ahead with plans to temporarily idle or cut production at a number of manufacturing plants. Dow's automotive unit is cutting costs that include workers and plants in light of a North American sales decline.
Chairman and Chief Executive Andrew Liveris said in a statement the steps are "extremely unwelcome but entirely unavoidable" as global energy costs surge.
"The price increases we announced May 28 helped, but they were not enough to fully cover the additional costs we are now facing," he said.
"Even since our last announcement, the cost of hydrocarbons has continued to rise, and that trajectory shows no sign of changing. We must restore margins in our businesses, both through price increases and the reduction of operating costs at certain production facilities."
Dow Chemical makes everything from the propylene glycols used in antifreeze, coolants, solvents, cosmetics and pharmaceuticals, to acrylic acid-based products used in detergents, wastewater-treatment and disposable diapers.
Its products are sold in 160 countries.
The company in April reported a 3 percent drop in quarterly earnings. At the time, Dow said it considered that a strong showing in the face of a 42 percent jump in feedstock and energy costs.